Understanding the concept of "Partnership" is crucial for students preparing for school exams and competitive tests. This topic frequently appears in various examinations, making it essential to practice MCQs and objective questions. Engaging with these practice questions not only enhances your grasp of the subject but also boosts your confidence in tackling important questions during exams.
What You Will Practise Here
Definition and types of partnership
Key concepts of profit-sharing ratios
Calculation of goodwill in partnerships
Understanding partnership agreements
Distribution of profits and losses
Important formulas related to partnership
Real-life applications and examples of partnerships
Exam Relevance
The topic of Partnership is a significant part of the curriculum for CBSE, State Boards, and competitive exams like NEET and JEE. Students can expect questions that test their understanding of partnership agreements, profit-sharing calculations, and the implications of different types of partnerships. Common question patterns include numerical problems, theoretical explanations, and application-based scenarios, making it vital to be well-prepared.
Common Mistakes Students Make
Confusing different types of partnerships and their characteristics
Incorrectly calculating profit-sharing ratios
Overlooking the importance of partnership agreements
Misunderstanding the concept of goodwill and its valuation
Failing to apply theoretical concepts to practical problems
FAQs
Question: What are the main types of partnerships? Answer: The main types of partnerships include general partnerships, limited partnerships, and limited liability partnerships.
Question: How is goodwill calculated in a partnership? Answer: Goodwill is calculated based on the average profit of the partnership and the number of years it has been in operation, often using the formula: Goodwill = Average Profit × Number of Years.
Now is the time to enhance your understanding of partnerships! Dive into our practice MCQs and test your knowledge to excel in your exams. Remember, consistent practice is the key to success!
Q. C and D invest in a business in the ratio of 1:4. If the total profit is $5000, how much does D receive?
A.
$4000
B.
$3000
C.
$2000
D.
$1000
Solution
Total parts = 1 + 4 = 5. D's share = (4/5) * 5000 = $4000.
Q. If A invests $15,000 and B invests $25,000 in a business, and they share the profit in the ratio of their investments, what will be B's share if the total profit is $20,000?
Q. If A invests $2000 and B invests $3000 in a business, and they agree to share profits in the ratio of their investments, what will be A's share of a $500 profit?
Q. If A invests $3000 and B invests $7000 in a business, and they share the profit in the ratio of their investments, what is A's share of a $5000 profit?
Q. If A invests $40,000 and B invests $60,000 in a business, and they share the profit in the ratio of their investments, what will be A's share if the total profit is $30,000?
Q. If A invests $4000 and B invests $6000 in a business, and they agree to share profits in the ratio of their investments, what is A's share of a profit of $2400?
Q. If A invests $4000 and B invests $6000 in a business, and they agree to share profits in the ratio of their investments, what is A's share of a profit of $5000?
Q. If A invests $4000 and B invests $6000 in a business, and they share the profit in the ratio of their investments, what is A's share of a $2000 profit?
Q. If A, B, and C invest in a business with amounts of $15,000, $25,000, and $10,000 respectively, what is the profit share of B if the total profit is $50,000?
Q. In a partnership, A invests $5000 and B invests $7000. If the profit is divided in the ratio of their investments, how much profit does B get from a total profit of $2800?
